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Consequences of mixed provision of child care: An overview on the German market

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  • Muehler, Grit

Abstract

Universal child care that is available, affordable and of good quality is regarded as a key instrument of a country's social and labor market policy. As full public involvement in the provision of child care is costly, licensing non-public providers can enlarges parental choice and relieve public funds. This paper analyzes the consequences of universal, mixed-market provision of child care for availability and quality by directly comparing public providers to various non-public providers such as welfare organizations, churches and commercial providers. Controlling for regional and socio-demographic differences in participation, results show that non-religious and in particular commercial providers serve the under three-year-olds and respond to the demand for full-day care. Furthermore, they employ more personnel with a tertiary education. Hence, commercial providers can - at least when covering rather low market shares - increase parental choice and contribute to the provision of high-quality child care.

Suggested Citation

  • Muehler, Grit, 2010. "Consequences of mixed provision of child care: An overview on the German market," ZEW Discussion Papers 08-077 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:08077r
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    File URL: https://www.econstor.eu/bitstream/10419/40161/1/634633155.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kluve, Jochen & Tamm, Marcus, 2013. "Parental leave regulations, mothers' labor force attachment and fathers' childcare involvement: evidence from a natural experiment," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 983-1005.
    2. Gathmann, Christina & Sass, Björn, 2017. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply and Children," IZA Discussion Papers 10813, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    universal child care; mixed industry; public and private sector;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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